Another RBI review on 5th april for considering interest rate cuts. Since post office rates are lowered already, fed has not raised interest rates , RBI is likely to lower rates
by atleast 25 basis points. Only speculation is wheher it will be 50 or 25 basis points.Last year it was cut by 125 basis points by RBI but banks did not transmit it in full to all
for lending. So expect downward revision of FD rates in keeping with a lower interest rate regime. Assuming an average inflation of 5%, the interest rates cannot be higher
than 6.5 or 7 %. So more suffering for pensioners[ they may get 0.5%additional interest more thats all].Real interest rates after discounting inflation is 1.5 to 2 %.
The concept of living on bank interest which seniors have is faulty.
They need to have some investment options also in their finance profile.
